Mycobacterial cell wall is rigid and offers a high resistance to the transport of sitosterol into cytosol. The effect of ethambutol, penicillin, polymixin and bacitracin on biotransformation of sitosterol to androstenedione by modification of cell wall permeability was examined. Drug sensitivity assay results established that bacitracin increased the permeability of the cell wall to hydrophobic compounds. Growth inhibitory study of bacitracin and rifamycin, individually as well as in combination showed that these two antibiotics act synergistically to reduce cell growth. A comparison of transmission electron micrograph results of the bacitracin-treated cells with untreated cells, revealed deformities caused in the cell wall structure by bacitracin treatment. These deformities increased the cell wall permeability and transport of sitosterol inside the cell, and thus enhanced androstenedione (AD) production. A maximum of 1.37, 1.44, 1.65 and 1.76 g AD per gram dry cell weight of mycobacterial cells was produced in the presence of ethambutol, penicillin, polymixin and bacitracin, respectively. Below the minimum inhibitory concentration, bacitracin can be used as potent enhancer of permeability of hydrophobic substances across the mycobacterial cell wall.